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Dubai Holding, which is seeking to IPO its subsidiary Dubai Residential REIT, has increased the size of the offering to 15% of the entity’s capital from the previous 12.5% on the back of strong demand.
The offering is now expected to raise between AED 2.08 billion ($568 million) and AED 2.14 billion ($584 million) based on the price range of AED 1.07 to AED 1.10 per unit.
This implies a market capitalisation at listing of between AED 13.9 billion and AED 14.3 billion.
With the upsizing, the tranche offered to institutional investors, is increased from 1,462,500,000 units to 1,787,500,000 units. The size of the retail tranche remains unchanged.
Upon listing, DHAM REIT Management LLC DHAM Investments LLC, a subsidiary of Dubai Holding, will continue to own a majority 85% stake in the REIT.
Proceeds from the sale of up to 243,750,000 units will be allocated to xCube LLC to conduct stabilisation transactions on the DFM following the listing, a statement said.
Dubai Holding, the investment conglomerate owned by the emirate’s ruler, is one of the largest landowners and property developers in the UAE.
The units are expected to begin trading on 28 May.
(Writing by Brinda Darasha; editing by Seban Scaria)
